There was a v interesting piece in the Guardian about the family, I started a thread on it but only Aitch noticed 
\link{http://www.mumsnet.com/Talk/in_the_news/1255162-The-Murdoch-family-imbroglio2-fascinating-piece-by-Michael-Wolff\by Michael Wolff who has written a book about Murdoch, The Man Who Owns the News}
There is plenty of rivalry within the family (as you'd expect) & apparently Mrs RM III does not like RB, which means RM can't fire her because it would look as if he was siding with the Mrs over his children; also
'Family insiders say it was Freud who suggested closing the paper. He is said to have described it to James as a "Wapping" approach ? that is, when Rupert in the dead of night moved his British papers to Wapping to break the print unions'
It's a bit hearsay but both those things make sense...